Three Senior Executives at SAC Capital Subpoenaed to Testify: Report
Three more senior executives at SAC Capital Advisors have received subpoenas to testify before a grand jury in the government's investigation into alleged insider trading at the $15 billion hedge fund, Dow Jones reported.
The U.S. Attorney's office for the Southern District of New York issued subpoenas to President Thomas Conheeney, Chief Compliance Officer Steven Kessler and Phillipp Villhauer, SAC's head of trading, though none of them has been accused of any wrongdoing, according to the report.
SAC Capital declined to comment on the matter.
Others at the firm, including founder Steven Cohen, were asked last week to testify before the grand jury as part of the government's investigation.
Prior to the subpoenas, SAC had been in settlement talks with the government that would have resolved the remaining insider-trading allegations hanging over SAC Capital related to to two pharmaceutical trades from 2008, among others.
Under the deal, SAC would have paid a fine and the government would have agreed to not pursue criminal charges against the firm. But the subpoenas suggest that the federal prosecutors are building their case against the firm. Grand juries are tasked with determining whether charges should be brought.
SAC had been cooperating with the investigation but last week told investors that it would no longer cooperate "unconditionally" with the investigation. The notification came in a brief letter to shareholders without further elaboration. The firm said the next few months would be critical to the investigation and bring more "clarity about the outcome of these matters."
"In the past we have tried to be as transparent as possible," the fund said, adding that going forward, it may "need to keep details confidential."